ANNUAL REPORT 2018 - Community First Credit Union

COLLABORATION | CONTINUOUS IMPROVEMENT | COMMITMENT TO MEMBERS

ANNUAL REPORT 2018

Federally insured by NCUA

Community First Credit Union

Established

Since 1935, the story of Community First has unfolded from our launch in a high school basement as the Duval County Teachers Credit Union, to a 19-branch, more than 134,000-member financial institution open to all residents in Baker, Brevard, Broward, Clay, Duval, Flagler, Indian River, Lake, Martin, Nassau, Orange, Palm Beach, Putnam, Seminole, St. Johns, St. Lucie, and Volusia.

Founder

Raymond A. Vinson

Our Mission

To provide financial solutions for every stage of life

Our Core Values

Collaboration Commitment to Members Community Focus Continuous Improvement Creating Trust Creativity and Innovation

Board of Directors and Audit Committee Chair of the Board's Report Community First Cares Foundation CEO and President's Report Audit Chair's Report and Financial Report Community Partnerships

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Community Focus

For the second year in a row, runners from Jacksonville, Florida and beyond gathered to make some room for sweet potato casserole by participating in the Community First Thanksgiving Day Classic! More than 2,500 people participated by running in the Half Marathon, 5k, and the 1-mile Turkey Trot.

BOARD OF DIRECTORS AND AUDIT COMMITTEE

Board of Directors

The board of directors is responsible for ensuring your credit union is operating safely and soundly and creating a solid financial foundation for the institution. We also establish policies and procedures for the leadership to implement for improved operations and service.

ELVIA WILLIAMS Chair of the Board Communications Coordinator, JEA

SCOTT BENNETT Vice Chair Associate Vice President, Administration & Finance, UNF

Audit Committee

BETTIE ADAMS Secretary Retired, Assistant Professor of Accounting & Finance, UNF

ELLEN PAIGE Treasurer Executive Director, Budgeting & Business Operations, JU

MARSHA COARSEY Retired, Duval County Public Schools

BRUCE DOUECK Realtor, Watson Realty Company

WILLIAM PERMENTER Retired, Duval County Public Schools

MALINDA PRUDENCIO Vice President, Risk Control & Chief Risk Officer, The Energy Authority

DR. BRENDA R. SIMMONS-HUTCHINS Retired, FSCJ Independent Educational Consultant

BRUCE DOUECK Chair Realtor, Watson Realty Company

GINA EUBANKS CIA, CISA, CRMA, CCSA Governance Advisor, Eubanks Risk Consulting, LLC

JOHN JOLLY CPA Retired, Captain USNR

ALAN LOVETT Vice President, Internal Audit Services, Advanced Disposal

CHANTELLE QUICK CPA Senior Vice President, Controller, Stein Mart

Community Focus

We provide support to local community teams and venues, such as the Jacksonville Jumbo Shrimp, Jacksonville Zoo and Gardens and the Jacksonville Icemen.

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CHAIR OF THE BOARD'S REPORT | ELVIA WILLIAMS

On behalf of the volunteer board of Community First Credit Union, thank you for supporting locally based financial services. We continue to grow because of your support of our mission to provide financial solutions for every stage of life and our vision to improve members' lives while building strong and vibrant communities. As your newly elected Board Chair, I am proud to help present our 2018 Annual Report.

Oakleaf

The board of directors is responsible for ensuring your credit union is operating safely and soundly and creating a solid financial foundation for the institution. We also establish policies and procedures for the leadership to implement for improved operations and service.

In addition to providing outstanding financial products and services, our commitment to enhancing life in the communities we serve is unparalleled. I have personally been a member of the credit union since the mid-1980s and started my volunteer service to the credit union in 2009. In addition to serving on the board, I have also chaired the Raymond A. Vinson Scholarship Committee, the Financial Literacy Committee, and the Core Values Committee. As a result, I can attest to the many ways this credit union helps improve quality of life across the region. One of my proudest moments was serving on the board in 2013 when the credit union created the Community First Cares Foundation.

Fleming Island

In 2018, I was especially proud to watch Community First Credit Union expand its branch network by opening a new branch at Oakleaf Town Center, opening the newly built Fleming Island branch, opening a relocated Yulee branch, and unveiling the renovated Jacksonville Beach branch.

Our community involvement remains supreme, with new initiatives in 2018, such as the launch of the first-ever Jumbo Shrimp Debit Card. We also continued our commitment to providing the community with affordable ways to experience local fun. Sponsoring the Jacksonville Zoo and partnering with the Museum of Science and History (MOSH) are just two examples of how we enhanced the lives of both members and non-members residing on the First Coast.

Yulee

The Community First Cares Foundation worked with the Cultural Council of Greater Jacksonville to award local artists with grants, supported the Women's Center of Jacksonville, and provided local teachers with financial support. In 2018, the Foundation awarded a grant to the Nassau County Education Foundation and funded Champions for Children grants to teachers in St. Johns County. I am proud of the philanthropic work we do and look forward to watching this grow in the coming years.

Community First Credit Union, a not-for-profit owned by our members, undergoes regular examinations by state and federal regulatory agencies. We also employ a third-party independent audit firm to ensure compliance. We have included an audit summary in the annual report. I think you will find that our policies and procedures have resulted in an exceptionally well-managed, financially secure institution.

We would not be the organization we are today without the support of our members. Thank you for your loyal membership. I look forward to working with the board and our CEO to help you continue to Love Where You Bank.

Sincerely, Beach Elvia Williams, Chair of the Board

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THE COMMUNITY FIRST CARES FOUNDATION

The Community First Cares Foundation helps support transformational change in our region. We fund high impact projects that build healthy communities by improving our educational system, enhancing financial literacy, and supporting programs that improve quality of life on the First Coast.

In 2018, the Community First Cares Foundation helped fund many meaningful projects and programs.

Since 2013, donations from our Board of Directors, partners, employees, and members have helped our

foundation provide nearly

$400,000 in charitable funding

right here on the First Coast.

CULTURAL COUNCIL OF GREATER JACKSONVILLE

In 2018, the Community First Cares Foundation embarked on a yearlong partnership with the Cultural Council of Greater Jacksonville. The partnership included support for a professional development workshop for artists, facilitated by the Cultural Council of Greater Jacksonville and other community stakeholders. The workshop, titled "Entrepreneur Symposium for Creatives: Every Artist is a Small Business," was held at the Ritz Theatre and Museum in downtown Jacksonville. In addition to sponsoring the event, the foundation supported Jacksonville's creative community by offering fifteen (15) individual artist grants for $1,000 each.

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THE COMMUNITY FIRST CARES FOUNDATION

INVESTING IN KIDS ? INK!

The Community First Cares Foundation, in conjunction with Investing in Kids (INK!), awarded the inaugural Champions for Children classroom innovation grants. The Foundation provided $10,000 total for this year's grant cycle. Teachers applied for funding in a competitive application process. Ten teachers in St. Johns County each received a $1,000 grant in November to support innovative classroom projects. Each of the ten winners was then entered into the grand prize competition, an additional $2,500 grant for his or her classroom project. This grand prize was awarded at the Teacher of the Year event in January 2019.

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THE MONIQUE BURR FOUNDATION

We continued our support of the Monique Burr Foundation (MBF) with a $10,000 grant to expand its important safety curriculum to all middle schoolers in our region. MBF Teen Safety MattersTM is a comprehensive, research-based, prevention education program that educates and empowers teens and all relevant adults with information and strategies to prevent, recognize, and respond appropriately to bullying and cyberbullying.

JACKSONVILLE PUBLIC LIBRARY FOUNDATION

The 2018 Summer Learning program, implemented throughout Jacksonville's 21 public library branches, was a huge success. The goal of this reading program is to reduce the effects of the "summer slide" -- students losing educational ground they gained the previous school year while they're on summer break. Community First Cares Foundation helped local children participate in Summer Learning through a donation of $8,401. Every $5 donated helped offset the cost for one child to attend the summer programs at neighborhood branches.

THE GIVING CLOSET PROJECT

We continued our support of Jacksonville's first and only physical closet housed in a Duval County Public School for students who need clothing, shoes, hygiene items, and other basic supplies that we often take for granted.

WE CARE

The Community First Cares Foundation provided a third-year grant to help We Care continue their important health and wellness program, including a part-time community health worker who advocates for patients and their healthcare when no one else can or will. Without the community health worker, many patients would have nowhere to turn when their medications run out and their pantries become empty.

WOMEN'S CENTER OF JACKSONVILLE

In July, the Women's Center of Jacksonville received $15,000 in funding to counsel survivors of sexual assault through the organization's new Sexual Assault Forensic Exam (SAFE) Center on Emerson Street. The donation from Community First Cares Foundation to the SAFE Community Initiative is the first from a financial institution and shows Community First's commitment to Northeast Florida survivors of sexual assault.

THE COMMUNITY FIRST CARES FOUNDATION

FREED2RUN/JAX AREA LEGAL AID

Community First was proud to participate in an amazing relay team event, Freed to Run, which covered six marathons (157 miles) in six days (December 2-7) with various teams covering the distance from the Florida Supreme Court in Tallahassee all the way to the Duval County Courthouse in Jacksonville. Five courageous Community First runners joined the cause and ran a single marathon on December 4. They ran from the Madison County Courthouse to the Suwannee County Clerk of the Circuit Court joining Mike Freed, who ran all six marathons in six days to benefit Jacksonville Area Legal Aid (JALA). All Freed to Run donations went to the JALA Endowment for the Northeast Florida Medical Legal Partnership (NFMLP), through which healthcare professionals and institutions collaborate with attorneys to produce better outcomes for children with medical conditions. The Community First Cares Foundation matched all Community First employee donations and the Baptist Health Jacksonville Foundation provided a 125 percent match on all donations.

BASCA, INC.

In December, we supported Building Abilities for Special Children and Adults (BASCA), a local nonprofit serving Clay County. BASCA focuses on helping individuals with intellectual and developmental differences achieve a higher quality of life and sense of belonging. Parents who were looking for programs that concentrated on the special needs of children with disabilities started the organization. The desire was to offer programs and services that provide each individual opportunities to learn how to lead a life that makes them feel complete. They build not only skills, but also the confidence to go out into the job market, integrate into the community, meet people, and help others by volunteering.

NASSAU COUNTY EDUCATION FOUNDATION

In September, the Nassau Education Foundation announced it received $10,000 from the Community First Cares Foundation. The donation was designated to buy the innovative BrainPOP program, an animated educational platform that engages students and supports teachers with cross-curricular digital content. The software will be used in and out of the classroom to enhance learning in all 16 Nassau County public schools.

CLAY COUNTY EDUCATION FOUNDATION

The Community First Cares Foundation proudly supported the Clay County Education Foundation via their Mini-Grant program. Innovation and creativity are the catalysts for improved learning, especially in the areas of math, reading, and science. The Mini-Grants allow teachers to use innovative materials and novel methods that enhance the curriculum and improve the academic performance of their students.

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CEO AND PRESIDENT'S REPORT | JOHN HIRABAYASHI

I am proud to present our annual report for 2018. The credit union experienced one of its strongest years in the past decade, as we continued to grow our membership, strengthen financially, and demonstrate our commitment to the community.

This report shows unrivaled financial strength and fiscal responsibility to our members, the co-operative owners of our credit union. Last year, our Community First team, our region, and our members experienced growth and improvements, as well as some unexpected challenges. I'm pleased to share our successes and highlights of our 2018 annual report.

BY THE NUMBERS

20 $

million

We set a record high net income of just over $20 million, almost 50% higher than what we budgeted.

400 $

million

We realized exceptionally strong loan production, lending almost $400 million to our members.

134,886 m e m b e r s We grew membership by more than 7% to 134,886 members.

1.4 $

billion

We increased deposits more than 8% to $1.4 billion.

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64.04% Net Promoter Score

From our members, we earned a record high online Net Promoter Score of 64.04%! To put that score in perspective,

the average Net Promoter Score for credit unions regionally is just 44%.

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